Back to the origin of DeFi with Vader Protocol
So many radical ideas get tamed, corporatised, and centralised. Remember when the internet was new and exciting, being shaped by users from the ground up, and using the intrinsic barriers to adoption to create something genuinely fair and innovative?
DeFi hasn’t exactly had an ‘AOL moment’ yet, but arguably it’s becoming a victim of its own success, and so many projects are in danger of forgetting that the ‘De’ is supposed to stand for decentralization. How decentralized is a 20% pre-mine, or selling a wedge for VC money in exchange for equity? It’s fundamentally at odds with the whole principle.
So, the Vader Protocol is a refreshing reset.
No pre-mine, no VCs, a genuine community, building from the ground up — does this remind you of anything so far? No wonder it’s already highly memeable and attracting a lot of attention, not all of it Star Wars style. VADER after all means ‘father’ in Dutch and other Germanic origin languages, and it makes sense in terms of fathering — or parenting — liquidity. A fertile place to start from.
But it’s not the 1990s, and the Vader team have learned from the best examples of what’s already out there, to get the fundamentals right and create a future-proof token economy. The Vader Protocol is a combination of the best core ideas in DeFi, bringing together all the different elements needed for decentralised success.
This includes a hybrid algorithmically collateralized stablecoin mechanism similar to Terra’s burn-to-mint $LUNA / UST. Native to the Vader Protocol, USDV is minted via token burns to and from VADER at market value, with zero slippage. All asset pools pair USDV with another asset, removing exposure to the volatility risks of token-to-token pairings.
That means users get clear and transparent pricing, without having to figure out conversion rates — the slip-based fees take liquidity into account to enable single side staking with no impermanent loss. This is a unique and groundbreaking feature, because as a new form of self-contained liquidity protocol, VADER uses its own liquidity to support the creation of USDV, which in turn anchors the AMM. Neat, isn’t it?
And of course, it uses the same liquidity as collateral for synthetic assets, with guaranteed redemption potential. The incentive strategy, maximising the liquidity pools and adoption of synthetic assets, is fair and transparent — channelling the best of $RUNE, THORChain (CLP+ILP) and other latest-generation AMMs.
Long-term sustainability as a new kind of AMM is also ensured by bond sales (similar to Olympus DAO), which allow for Protocol Owned Liquidity. This liquidity is used when the slip-based fees generated by the liquidity pool tokens generated fees, which back the purchasing power of the stablecoin. You can see the best of $OHM manifest here, but VADER goes further. For sure, owning over renting liquidity is a truth that even Trad-Fi investors have known about for a long time.
Are you beginning to see why I am excited about the potential of this project?
There isn’t anything else, which has the combination of a genuinely decentralized stablecoin, with a slip-based fee AMM to boost network effects and user demand from its inception, combined with the long-term incentivizing power of the protocol owned liquidity via bond sales. Right from the start, the platform rewards those who help make it stronger, and it’s the synthesis of all these core ideas within DeFi that generates a truly decentralized stablecoin, for the first time in the movement’s history.
There’s even a staking and governance token, xVADER, to ensure the stability of the whole ecosystem — you can stake your VADER to get xVADER, which compounds the initial value with no risk of impermanent loss. And the entire protocol is designed with a minimal governance requirement via DOA, which even has the potential to purge itself in a future where the system proves independent sustainability.
The project has pursued an aggressive roadmap through 2021 and achieved the complete protocol launch ahead of target. So, investors can be confident about the equally ambitious targets for 2022 — including a range of Q1 targets like partnership integrations, cross-chain deployments, collateral debt leveraged positions and expansion of the asset pools.
Right now, VADER token is significantly undervalued compared with other similar projects, which makes this one of my hottest recommendations in a long while.
So don’t miss your chance to get a piece of the action when it comes to this particular gem!
Unofficial Telegram community: https://t.me/Vaderians